As a result, Deighan said he expects the bond markets to take a hit when the interest rates start to move.

“The ratio of dollars going into bond funds versus stock funds in 2009 was 13 to 1, so when those interest rates start to go up, we’re going to see a huge decrease in the fair market value of the bonds,” he said.

Deighan also said stocks will retest the March lows and will bust through them. He advised investors to buygold instead of stocks.

“Seventy percent of China’s reserves is denominated by the U.S. [currency] and 1.9 percent by gold and [China's] the largest producer of gold," he said. "So I’m seeing gold up in demand in China for those reasons. You buy the gold on dips.”